As of Thursday close, Lumentum Holdings Inc.’s (NASDAQ:LITE) stock was down -$0.61, moving down -1.30 percent to $46.20. The average number of shares traded per day over the past five days has been 2,989,940 shares. 3 times new highs have been achieved over the past 5 days, with a -$3.71 fall in that time frame. In the last twenty days, the average volume was 1,618,235, while in the previous 50 days, it was 2,015,692.
Since last month, LITE stock retreated -12.80%. Shares of the company fell to $44.75 on 08/17/23, the lowest level in the past month. A 52-week high of $94.22 was reached on 06/20/23 after having rallying from a 52-week low of $42.00. Since the beginning of this year, LITE’s stock price has dropped by -11.44% or -$5.97, and marked a new high 12 times. However, the stock has declined by -50.97% since its 52-week high.
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LITE stock investors should be aware that Lumentum Holdings Inc. (LITE) stock had its last reported insider trading activity 59 days ago on Jun 20. Ali Wajid, the EVP & Chief Financial Officer of the company, disposed of 6,872 shares for $60.50 on Jun 20. It resulted in a $415,756 divestment by the insider. Sepe Matthew Joseph sold 3,030 shares at an average price of $86.20 on Aug 29. The insider now owns 25,288 shares following the transaction. On Aug 23, EVP & Chief Financial Officer Ali Wajid sold 8,781 shares at $92.47 apiece. The transaction was valued at $811,937.
Valuation Metrics
The stock’s beta is 1.08. Besides these, the trailing price-to-sales (P/S) ratio of 1.76, the price-to-book (PB) ratio of 2.06, and the price-to-cash flow ratio of 25.77 may also be considered.
Financial Health
In the three months ended March 30, Lumentum Holdings Inc.’s quick ratio stood at 2.70, while its current ratio was 3.20, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending March 30 was 1.24, and the total debt-to-equity ratio was 1.51. On the profitability front, the trailing twelve-month gross margin is 36.40% percent. In the year ended March 30, EBITDA margin amounted to 27.72%, whereas operating margins totaled -0.20%. Based on annual data, LITE earned $788.6 million in gross profit and brought in $1.71 billion in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 7.10%. Return on equity (ROE) for the past 12 months was -2.30%.
In Lumentum Holdings Inc.’s quarter-end financial report for March 30, it reported total debt of $1.9 billion against cash and short-term investments of $1.12 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. LITE’s revenue fell -8.42% to $481.3 million during the quarter, while net income inched up to $364.7 million. While analysts expected Lumentum Holdings Inc. to report $0.8 quarterly earnings, the actual figure was $0.75 per share, beating the consensus estimate by -6.30%. During the quarter, the company generated $15.9 million in EBITDA. The liabilities of Lumentum Holdings Inc. were 2.82 billion at the end of its most recent quarter ended March 30, and its total debt was $2.39 billion. The value of shareholders’ equity is $68.7 million.
Technical Picture
This quick technical analysis looks at Lumentum Holdings Inc.’s (LITE) price momentum. With a historical volatility rate of 50.20%, the RSI 9-day stood at 25.69% on 17 August.
With respect to its five-day moving average, the current Lumentum Holdings Inc. price is down by -7.43% percent or -$3.71. At present, LITE shares trade -11.93% below its 20-day simple moving average and -10.10% percent below its 100-day simple moving average. However, the stock is currently trading approximately -7.77% below its SMA50 and -38.28% below its SMA200.
Stochastic coefficient K was 30.21% and Stochastic coefficient D was 34.86%, while ATR was 2.39. Given the Stochastic reading of 17.10% for the 14-day period, the RSI (14) reading has been calculated as 31.13%. As of today, the MACD Oscillator reading stands at -1.83, while the 14-day reading stands at -2.40.
Analyst Ratings
Lumentum Holdings Inc. downgraded its rating on Lumentum Holdings Inc. (NASDAQ: LITE) to an Underperform in a note to investors on July 18, 2023. The analysts firm previously had a Neutral rating on the stock.Lumentum Holdings Inc. (LITE) has been rated Hold by analysts. According to 1 brokerage firm, LITE is a sell, and 6 firms recommend it is a Hold. There are 1 analyst who say the stock is underweight. A total of 2 analysts rate Lumentum Holdings Inc. stock as buy, with 4 recommending it as overweight.
With a median target price of $55.00, the current consensus forecast for the stock is $40.00 – $67.00. Based on these forecasts, analysts predict Lumentum Holdings Inc. (LITE) will achieve an average price target of $52.95.
